Make-to-Order Production - Semifinished Goods Planning and Assembly

This scope item supports production planning for semifinished components within a Make-to-order (MTO) environment before the receipt of incoming sales orders. This reduces the lead time of sales orders for finished goods received that are received later.

Demand forecast is created for semifinished components that are represented through planned independent requirements (PIRs). Based on PIRs, Material Requirements Planning (MRP) creates a production plan for the component and explodes the bill of material structure for higher low-level codes. As a result, the demand for semifinished component production and raw material is planned.

The production process is made up of the following: Conversion of planned into production orders, order release, confirmation of order operations with automatic backflush of components, and goods receipt posting.

The scenario is completed with the receipt of an incoming sales order and either the consumption of the component part of this scope item, or by reference to the entire MTO scenario in the BJE scope item.

Key Process Steps Covered

  • Manage demand forecast for semifinished products as Planned Independent Requirements (PIRs)
  • Schedule MRP run
  • Start production for semifinished product before incoming sales orders
  • Consume PIRs and stock of semifinished product in sales orders

Benefits

  • Reduce total lead time in make-to-order production scenarios
  • Create purchase requisitions for raw materials early
  • Produce semifinished products early
  • Improved usability with intuitive confirmation of production operations